Why cover?
  • affects 1 in 4 women / 1 in 5 men before retirement
  • 94.1% of the critical illness claims are paid
  • protect yourself and your family if you get seriously ill
Why us?
  • get the cover that will pay when you need it
  • save up to 35%, cover from £5 a month
  • free, fast and without obligation quotes
Insurers: Aviva, Legal & General, Liverpool Victoria, Scottish Widows, Vitality, Zurich

Do I really need critical illness insurance?

Often, the notion is that since one already has health insurance, one does not need to get cover for critical illness. It seems redundant, doesn’t it? Also, there is free healthcare in public hospitals, so you can get the treatment you need.

Let’s start with defining what critical illness insurance is. This is a kind of insurance cover that will pay the equivalent of the face amount when you are diagnosed with a serious illness that is listed under the policy.

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To make the case for getting cover for critical illness, let us look at these statistics:

  • Some 20% of men and 15% of women are diagnosed with a serious illness prior to retirement age.
  • Over 400 people are stricken by a stroke yearly. A quarter of the population who have hypertension and high blood pressure issues are actually in danger of getting a stroke – because the heart problem has not been identified and people are not getting the right medication.
  • Three-fourths of those who have a stroke may survive for more than a year.
  • Men (35%) and women (46%) can survive a cancer diagnosis for at least five years.

These are just some of the statistics that indicate the chances that we will get critically ill. Other things to consider would be your lifestyle (Do you eat right? Do you exercise?) and your family tree (what critical illnesses are prevalent in both your father’s and mother’s sides?).

What is critical illness insurance?

It gives a tax-free lump sum payment when you are diagnosed with a covered serious illness. Some covered illnesses include:

  • Cancer
  • Stroke
  • Heart attack
  • Blindness/Deafness
  • Parkinson’s Disease
  • Alzheimer’s Disease
  • Major Organ Transplant
  • Aorta Graft Surgery
  • Heart Valve Transplant
  • Coma
  • Kidney Failure
  • Loss of limbs/hands/feet
  • Loss of speech
  • Terminal Illness
  • Multiple Sclerosis
  • Motor Neurone Disease

What critical illness insurance is not

It is not a health insurance cover. Health insurance provides payment/discounts for specific medical procedures or services. But you can use the money from a critical illness claim to pay for your medical treatment. Know more here: Critical Illness vs. Hospitalization and Surgical plan.

It is not an income protection cover. Income Protection cover provides a monthly benefit if you become disabled, regardless of whether the disablement is due to a critical illness or not. But you can use the money from the claim to provide for your family’s day-to-day needs. Know more here: Critical Illness vs. Income Protection insurance.

It is not a life insurance policy. Life insurance pays upon your death, whereas critical illness cover pays when you become diagnosed with a serious illness. You can actually think of combining the two covers under one policy. See the comparison between the two here: Critical Illness insurance vs. Life Insurance.

It is not long term care insurance. Long term care insurance provides a monthly/weekly benefit that will go towards one’s long term care needs, such as nursing home fees or at home nursing care fees. But you can use the proceeds of your claim to also fund these needs. Learn more about their differences and similarities here: Critical Illness vs. Long Term Care insurance.

Why buy critical illness insurance?

You may argue that critical illness insurance is an unnecessary purchase. But we beg to disagree. Please take note of the following reasons:

Funds when you need it.

The one distinctive advantage of critical illness insurance is that you are the one who will receive the proceeds, not your beneficiaries. That means you get to use these funds on yourself. Plus, the proceeds from the critical illness are not taxable!

Flexibility in spending.

When you are diagnosed with a serious illness, your expenses are not limited to doctor’s fees and medications. You may also need to spend for housekeeping or childcare services while you are recuperating or getting treatment. The proceeds from the insurance are at your disposal – you can spend it however way you like.

Improved quality of life.

Once you’re out of the hospital, you may need to hire a nurse to care for you at home. You may also need to install specialized equipment in your home. In addition, you can use your money to do something you’ve always dreamed of – like spend time travelling around the world.

Peace of mind.

This provides an additional cushion to prepare you for the unexpected events in your life – such as getting critically ill.

Preservation of assets.

When you are diagnosed with a grave illness, you may have to look at your assets to help fund your treatment, rehabilitation and recovery. With funds from a critical illness cover, you don’t have to deplete your assets and you can still leave a heritage and inheritance to your loved ones.

Do I need a critical illness cover when I already have health insurance?

If you have a health insurance plan through work, a critical illness cover that you personally buy can actually act as a supplement. The health insurance can cover the hospital treatments while the proceeds from the critical illness cover can pay for co-insurance and deductibles, as well as out-of-pocket costs such as travel and communications costs, the cost of hiring a housekeeper or childcare or the overall cost of recovering from the critical illness.

Thinking about getting a critical illness cover?

Here are some things you can consider about the policy:

Last updated on: 18.1.2013

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